FDX Seniority adjustment
07-02-2015, 08:27 AM
#51
Gets Weekends Off
Joined APC: Sep 2006
Posts: 555
Tricare for Life is Medicare only!
TonyC,
Tricare for life is only available after reaching medicare eligible age. Prior to that, it is simply Tricare.
Can the HRA ($25K VEBA) be used for any Health care expenses, or just if you use the company Retire Health?
Same question for the VEBA (%0.50/CH), can a retire with other healthcare use the VEBA to offset his cost?
I think are benefits should be for everyone. As in, a retiree with Tricare, Tricare for Life, spouse's plan, etc. should be able to offset his cost from the VEBA. He is "paying" for the offset during his employment. So our benefits should be equal across the board. The question is, does the Trust only offset FedEx ALPA post-medicare healthcare? Or is it to offset a retirees medical expense, regardless of where the health coverage comes from?
Tricare for life is only available after reaching medicare eligible age. Prior to that, it is simply Tricare.
Can the HRA ($25K VEBA) be used for any Health care expenses, or just if you use the company Retire Health?
Same question for the VEBA (%0.50/CH), can a retire with other healthcare use the VEBA to offset his cost?
Originally Posted by TonyC
Do you think our benefits should be different if we have non-FedEx sources to fall back on (military retiree, spouse's plan, large inheritance from rich uncle, etc.)?
07-02-2015, 09:17 AM
#52
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
The 25K (plus interest) is availale to meet any heallthcare needs after they turn 60. Think of it as a healthcare savings account.
The post medicare (0.50/hour) is available to all retired FDX pilots after they reach medicare eligibility as it supplements medicare. The fund is managed by a board of retired pilots.
The post medicare (0.50/hour) is available to all retired FDX pilots after they reach medicare eligibility as it supplements medicare. The fund is managed by a board of retired pilots.
07-02-2015, 09:19 AM
#53
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by Flying Boxes
TonyC,
Tricare for life is only available after reaching medicare eligible age. Prior to that, it is simply Tricare.
Can the HRA ($25K VEBA) be used for any Health care expenses, or just if you use the company Retire Health?
Health Reimbursement Accounts. In accordance with the following,
the Company will establish, fund, invest and administer a Voluntary
Employees Beneficiary Association (VEBA) with individual Health
Reimbursement Accounts (HRAs) ...
the Company will establish, fund, invest and administer a Voluntary
Employees Beneficiary Association (VEBA) with individual Health
Reimbursement Accounts (HRAs) ...
e. A pilot’s HRA may be used for reimbursement of any qualified
medical expenses while retired, including participant premium
contributions, whether before or after Medicare eligibility.
Any unused amounts in the HRA at the time of the pilot’s
death (whether before or after retirement) may be used for
reimbursement of any qualified medical expenses of the eligible
surviving spouse and any other eligible surviving dependents.
Any unused amounts in the HRA at the last to die of the pilot,
eligible surviving spouse and eligible surviving dependents will
be forfeited to the VEBA.
medical expenses while retired, including participant premium
contributions, whether before or after Medicare eligibility.
Any unused amounts in the HRA at the time of the pilot’s
death (whether before or after retirement) may be used for
reimbursement of any qualified medical expenses of the eligible
surviving spouse and any other eligible surviving dependents.
Any unused amounts in the HRA at the last to die of the pilot,
eligible surviving spouse and eligible surviving dependents will
be forfeited to the VEBA.
Originally Posted by Flying Boxes
Same question for the VEBA (%0.50/CH), can a retire with other healthcare use the VEBA to offset his cost?
CBA §27.I.:
I. Post-Medicare Retiree Health
2. With respect to pilots who retire on or after January 1, 2008, and
their eligible dependents, the Retiree Group Health Plan shall
provide solely for coverage for the retiring pilot and/or his eligible
dependents for the period prior to their attaining Medicare eligibility
age. The Association shall establish, sponsor and maintain a Post-
Medicare Retiree Health Plan (“Post-Medicare Plan”) and Voluntary
Employees’ Beneficiary Association (“VEBA”), to be effective
January 1, 2008. Pilots retiring prior to January 1, 2008, who have
attained Medicare eligibility age may, if eligible, elect coverage under
the Post-Medicare Plan described in this Section 27.I. (below).
The Post-Medicare Plan and VEBA are collectively bargained for
purposes of Internal Revenue Code Sections 419 and 419A.
3. The Company will make a lump sum contribution to the VEBA of
$3.2 million, payable no later than November 30, 2006, with an
additional $40 million contribution to be made to the VEBA no later
than June 1, 2007.
As soon as practicable after October 30, 2006, but not later
than January 1, 2007, the Company will contribute to the VEBA
50 cents of each paid credit hour for each pilot having a seniority
list number (which would otherwise be paid to the pilot in cash) as
the pilot’s ongoing monthly contribution to the Post-Medicare Plan/
VEBA. The Company shall remit such contributions to the VEBA
no later than the 15th day of the calendar month following the
calendar month during which the credit hours were actually paid.
On the effective date of the Company’s contribution of 50 cents per
paid credit hour, the hourly pay rates agreed upon for pilots will be
established as book rates. Actual pay rates will be 50 cents less
per hour. All retirement and welfare benefits based on pay will be
based on pay determined under the book rates. The purpose of this
provision is to allow the ongoing monthly VEBA contributions of 50
cents per paid credit hour to be funded out of compensation that
would otherwise be paid directly to pilots in cash.
Lump sum and monthly contributions will be placed in an
interest-bearing escrow account until the VEBA is established.
4. The Post-Medicare Plan/VEBA will be administered by the
Administrative Board (Board), which will be composed of three
regular members and two alternate members. The President of the
Association will appoint and remove all members, based on the
recommendations of the FedEx MEC. Two regular members and
one alternate member will be retired pilots, and one regular member
and one alternate member will be active pilots. Regular and alternate
members may attend all meetings of the Board. Each regular member
has one vote. The alternate member who is a retired pilot may vote
in the absence of a regular member who is a retired pilot, and the
alternate member who is an active pilot may vote in the absence of
the regular member who is an active pilot. A quorum is established
by two retired pilot members and one active pilot member. Decisions
of the Board will be made by majority of the three members voting.
The Board will select, monitor and replace all vendors and other
providers of services to the Post-Medicare Plan (e.g., medical plan
administrator(s), trustee(s), investment manager(s)). The Board will
determine the Post-Medicare Plan’s investment policy and will have
full responsibility for investment of the VEBA funds. The Board will
determine benefits to be provided under the Post-Medicare Plan, as
provided below. Board members are fiduciaries subject to ERISA’s
standards of conduct for fiduciaries. The Administrative Board will
determine the reasonable administrative expenses which may be
paid by the Post-Medicare Plan/VEBA.
5. The Association will prepare and adopt the Post-Medicare Plan and
VEBA documents. The Association shall have the sole power to amend
the Post-Medicare Plan and VEBA at any time, without the Company’s
consent, provided that no modification (i) shall conflict with the terms
of this Agreement, or (ii) shall increase the obligations of the Company
under this Agreement without the Company’s consent.
6. The Administrative Board will determine all medical, pharmacy,
dental and vision benefits under the Plan. After the Plan’s inception,
the Administrative Board may modify benefits provided under
the Plan, subject to MEC approval; provided, however, that MEC
approval is not required for changes that are consistent with the
Pre-Medicare plan options, or are de minimus. The Administrative
Board is obligated to seek modifications to the Plan (subject to MEC
approval) that the Board reasonably determines are necessary or
appropriate to maintain the viability of the Plan. All individual benefit
claims and appeals of individual benefit claims under the Plan will
be filed with and decided by the vendors hired by the Administrative
Board, pursuant to such vendors’ standard procedures. The CBA’s
grievance procedures will not apply to any individual benefit claims
or appeals of individual benefit claims under this Plan.
7. The Administrative Board will determine the amount of participant
contributions required to maintain coverage under the Post-
Medicare Plan. Participant contributions may be made by automatic
deduction from the pension payment, or by automatic bank draft,
or automatic payment from the participant’s Health Reimbursement
Account (“HRA”) if any.
9. The following retired pilots, eligible spouses and eligible dependents,
and eligible survivors, shall be eligible to participate in the Post-
Medicare Plan (“Eligible Individuals”):
11. The parties agree that at the time this Agreement becomes
amendable, the Association and the Company will negotiate further
with respect to appropriate future contributions to the VEBA. Ninety
days prior to the amendable date, the Association agrees to provide
(or have the vendor provide) relevant data, information, claim
experience, etc., to the Company in anticipation of and solely with
respect to these negotiations.
their eligible dependents, the Retiree Group Health Plan shall
provide solely for coverage for the retiring pilot and/or his eligible
dependents for the period prior to their attaining Medicare eligibility
age. The Association shall establish, sponsor and maintain a Post-
Medicare Retiree Health Plan (“Post-Medicare Plan”) and Voluntary
Employees’ Beneficiary Association (“VEBA”), to be effective
January 1, 2008. Pilots retiring prior to January 1, 2008, who have
attained Medicare eligibility age may, if eligible, elect coverage under
the Post-Medicare Plan described in this Section 27.I. (below).
The Post-Medicare Plan and VEBA are collectively bargained for
purposes of Internal Revenue Code Sections 419 and 419A.
3. The Company will make a lump sum contribution to the VEBA of
$3.2 million, payable no later than November 30, 2006, with an
additional $40 million contribution to be made to the VEBA no later
than June 1, 2007.
As soon as practicable after October 30, 2006, but not later
than January 1, 2007, the Company will contribute to the VEBA
50 cents of each paid credit hour for each pilot having a seniority
list number (which would otherwise be paid to the pilot in cash) as
the pilot’s ongoing monthly contribution to the Post-Medicare Plan/
VEBA. The Company shall remit such contributions to the VEBA
no later than the 15th day of the calendar month following the
calendar month during which the credit hours were actually paid.
On the effective date of the Company’s contribution of 50 cents per
paid credit hour, the hourly pay rates agreed upon for pilots will be
established as book rates. Actual pay rates will be 50 cents less
per hour. All retirement and welfare benefits based on pay will be
based on pay determined under the book rates. The purpose of this
provision is to allow the ongoing monthly VEBA contributions of 50
cents per paid credit hour to be funded out of compensation that
would otherwise be paid directly to pilots in cash.
Lump sum and monthly contributions will be placed in an
interest-bearing escrow account until the VEBA is established.
4. The Post-Medicare Plan/VEBA will be administered by the
Administrative Board (Board), which will be composed of three
regular members and two alternate members. The President of the
Association will appoint and remove all members, based on the
recommendations of the FedEx MEC. Two regular members and
one alternate member will be retired pilots, and one regular member
and one alternate member will be active pilots. Regular and alternate
members may attend all meetings of the Board. Each regular member
has one vote. The alternate member who is a retired pilot may vote
in the absence of a regular member who is a retired pilot, and the
alternate member who is an active pilot may vote in the absence of
the regular member who is an active pilot. A quorum is established
by two retired pilot members and one active pilot member. Decisions
of the Board will be made by majority of the three members voting.
The Board will select, monitor and replace all vendors and other
providers of services to the Post-Medicare Plan (e.g., medical plan
administrator(s), trustee(s), investment manager(s)). The Board will
determine the Post-Medicare Plan’s investment policy and will have
full responsibility for investment of the VEBA funds. The Board will
determine benefits to be provided under the Post-Medicare Plan, as
provided below. Board members are fiduciaries subject to ERISA’s
standards of conduct for fiduciaries. The Administrative Board will
determine the reasonable administrative expenses which may be
paid by the Post-Medicare Plan/VEBA.
5. The Association will prepare and adopt the Post-Medicare Plan and
VEBA documents. The Association shall have the sole power to amend
the Post-Medicare Plan and VEBA at any time, without the Company’s
consent, provided that no modification (i) shall conflict with the terms
of this Agreement, or (ii) shall increase the obligations of the Company
under this Agreement without the Company’s consent.
6. The Administrative Board will determine all medical, pharmacy,
dental and vision benefits under the Plan. After the Plan’s inception,
the Administrative Board may modify benefits provided under
the Plan, subject to MEC approval; provided, however, that MEC
approval is not required for changes that are consistent with the
Pre-Medicare plan options, or are de minimus. The Administrative
Board is obligated to seek modifications to the Plan (subject to MEC
approval) that the Board reasonably determines are necessary or
appropriate to maintain the viability of the Plan. All individual benefit
claims and appeals of individual benefit claims under the Plan will
be filed with and decided by the vendors hired by the Administrative
Board, pursuant to such vendors’ standard procedures. The CBA’s
grievance procedures will not apply to any individual benefit claims
or appeals of individual benefit claims under this Plan.
7. The Administrative Board will determine the amount of participant
contributions required to maintain coverage under the Post-
Medicare Plan. Participant contributions may be made by automatic
deduction from the pension payment, or by automatic bank draft,
or automatic payment from the participant’s Health Reimbursement
Account (“HRA”) if any.
9. The following retired pilots, eligible spouses and eligible dependents,
and eligible survivors, shall be eligible to participate in the Post-
Medicare Plan (“Eligible Individuals”):
a. A retired pilot who has attained Medicare eligibility age, and
the retired pilot’s eligible spouse who has attained Medicare
eligibility age, are eligible for coverage under the Post-Medicare
Plan if the pilot retires on or after February 4, 1999, after having
satisfied the age and service eligibility requirements for retiree
health coverage under the Retiree Group Health Plan. The
retired pilot’s eligible spouse and eligible dependents who are
not eligible for Medicare will remain in the Retiree Group Health
Plan until they are either eligible for Medicare, then enter the
Post-Medicare Plan, or in the case of a dependent child, cease
to be eligible for coverage under the Retiree Group Health
Plan.
b. Pilot’s Eligible Surviving Spouse and Eligible Surviving
Dependents. A pilot’s eligible surviving spouse who has attained
Medicare eligibility age is eligible for coverage under the Post-
Medicare Plan if the pilot:
coverage under the Post-Medicare Plan will begin when that
individual attains Medicare age.
d. No individual may be covered under the Post-Medicare Plan
unless, immediately prior to coverage under the Post-Medicare
Plan, the individual was covered under either the Group Health
Plan or the Retiree Group Health Plan, except as follows: As
soon as possible after establishment of the Post-Medicare Plan,
the Administrative Board will conduct a single open enrollment
period allowing retired pilots who are otherwise eligible for
coverage (and their eligible spouse and eligible dependents) to
elect coverage under the Post-Medicare Plan even though, at
that time, they are no longer covered under the Group Health
Plan or the Retiree Group Health plan because they had
previously “opted out” of such coverage. The Company will use
its best efforts to determine who is eligible for coverage under
the Post-Medicare Plan pursuant to this provision, and will so
inform the Board.
e. An Eligible Individual becomes a participant in the Post-
Medicare Plan unless he opts out. Once an individual opts out
of Plan coverage, the individual cannot return to Plan coverage.
The Administrative Board will establish guidelines for opt-out
and deferral of enrollment. An individual’s participation will
terminate at the earliest of the following events:
the retired pilot’s eligible spouse who has attained Medicare
eligibility age, are eligible for coverage under the Post-Medicare
Plan if the pilot retires on or after February 4, 1999, after having
satisfied the age and service eligibility requirements for retiree
health coverage under the Retiree Group Health Plan. The
retired pilot’s eligible spouse and eligible dependents who are
not eligible for Medicare will remain in the Retiree Group Health
Plan until they are either eligible for Medicare, then enter the
Post-Medicare Plan, or in the case of a dependent child, cease
to be eligible for coverage under the Retiree Group Health
Plan.
b. Pilot’s Eligible Surviving Spouse and Eligible Surviving
Dependents. A pilot’s eligible surviving spouse who has attained
Medicare eligibility age is eligible for coverage under the Post-
Medicare Plan if the pilot:
i. Retired on or after February 4, 1999, after having satisfied
the age and service eligibility requirements for coverage
under the Retiree Group Health Plan; or
ii. Died on or after October 30, 2006, while on the seniority
list, after having satisfied the age and service eligibility
requirements for coverage under the Retiree Group Health
Plan; or
iii. Died on or after February 4, 1999, but before October 30,
2006, while on the seniority list, after having satisfied the
age and service eligibility requirements for coverage under
the Retiree Group Health Plan, if such pilot had elected
coverage under the Retiree Group Health Plan, pursuant
to the one-time election made available under that plan,
referenced in Section 27.H.3.a. and b. (above).
c. The eligibility of a retired pilot or such pilot’s eligible spouse forthe age and service eligibility requirements for coverage
under the Retiree Group Health Plan; or
ii. Died on or after October 30, 2006, while on the seniority
list, after having satisfied the age and service eligibility
requirements for coverage under the Retiree Group Health
Plan; or
iii. Died on or after February 4, 1999, but before October 30,
2006, while on the seniority list, after having satisfied the
age and service eligibility requirements for coverage under
the Retiree Group Health Plan, if such pilot had elected
coverage under the Retiree Group Health Plan, pursuant
to the one-time election made available under that plan,
referenced in Section 27.H.3.a. and b. (above).
coverage under the Post-Medicare Plan will begin when that
individual attains Medicare age.
d. No individual may be covered under the Post-Medicare Plan
unless, immediately prior to coverage under the Post-Medicare
Plan, the individual was covered under either the Group Health
Plan or the Retiree Group Health Plan, except as follows: As
soon as possible after establishment of the Post-Medicare Plan,
the Administrative Board will conduct a single open enrollment
period allowing retired pilots who are otherwise eligible for
coverage (and their eligible spouse and eligible dependents) to
elect coverage under the Post-Medicare Plan even though, at
that time, they are no longer covered under the Group Health
Plan or the Retiree Group Health plan because they had
previously “opted out” of such coverage. The Company will use
its best efforts to determine who is eligible for coverage under
the Post-Medicare Plan pursuant to this provision, and will so
inform the Board.
e. An Eligible Individual becomes a participant in the Post-
Medicare Plan unless he opts out. Once an individual opts out
of Plan coverage, the individual cannot return to Plan coverage.
The Administrative Board will establish guidelines for opt-out
and deferral of enrollment. An individual’s participation will
terminate at the earliest of the following events:
i. Failure to pay premium;
ii. Death;
iii. Individual first opts out of coverage under the Post-Medicare
Plan.
ii. Death;
iii. Individual first opts out of coverage under the Post-Medicare
Plan.
11. The parties agree that at the time this Agreement becomes
amendable, the Association and the Company will negotiate further
with respect to appropriate future contributions to the VEBA. Ninety
days prior to the amendable date, the Association agrees to provide
(or have the vendor provide) relevant data, information, claim
experience, etc., to the Company in anticipation of and solely with
respect to these negotiations.
Originally Posted by Flying Boxes
I think are benefits should be for everyone. As in, a retiree with Tricare, Tricare for Life, spouse's plan, etc. should be able to offset his cost from the VEBA. He is "paying" for the offset during his employment. So our benefits should be equal across the board.
Originally Posted by Flying Boxes
The question is, does the Trust only offset FedEx ALPA post-medicare healthcare? Or is it to offset a retirees medical expense, regardless of where the health coverage comes from?
The Post-Medicare VEBA money (Company's $3.2 million lump sum followed by Company's $40 million lump sum followed by 50¢ per credit hour since) goes to the Post-Medicare Retire Health Plan, in which you can choose to participate or to opt out.
Clear as mud?
.
07-02-2015, 09:36 AM
#54
Gets Weekends Off
Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
Originally Posted by Flying Boxes
TonyC,
Tricare for life is only available after reaching medicare eligible age. Prior to that, it is simply Tricare.
Can the HRA ($25K VEBA) be used for any Health care expenses, or just if you use the company Retire Health?
Same question for the VEBA (%0.50/CH), can a retire with other healthcare use the VEBA to offset his cost?
I think are benefits should be for everyone. As in, a retiree with Tricare, Tricare for Life, spouse's plan, etc. should be able to offset his cost from the VEBA. He is "paying" for the offset during his employment. So our benefits should be equal across the board. The question is, does the Trust only offset FedEx ALPA post-medicare healthcare? Or is it to offset a retirees medical expense, regardless of where the health coverage comes from?
Tricare for life is only available after reaching medicare eligible age. Prior to that, it is simply Tricare.
Can the HRA ($25K VEBA) be used for any Health care expenses, or just if you use the company Retire Health?
Same question for the VEBA (%0.50/CH), can a retire with other healthcare use the VEBA to offset his cost?
I think are benefits should be for everyone. As in, a retiree with Tricare, Tricare for Life, spouse's plan, etc. should be able to offset his cost from the VEBA. He is "paying" for the offset during his employment. So our benefits should be equal across the board. The question is, does the Trust only offset FedEx ALPA post-medicare healthcare? Or is it to offset a retirees medical expense, regardless of where the health coverage comes from?
07-02-2015, 10:34 AM
#55
Gets Weekends Off
Joined APC: Sep 2006
Posts: 555
Originally Posted by Busboy
The way I understand it...To be eligible for the post Medicare Pilot Reimbursement Plan(PRP) you have to be covered under a FDX health plan immediately prior to participating in the PRP.
HRA - Yes (I already had that which is why I asked specifically about Tricare for Life)
So, If an individual uses Tricare for Life (or any other health insurance), the VEBA (including money from scope payments) will never be available to that pilot for any medical expense.
Thanks for clearing that up Tony!
07-02-2015, 10:38 AM
#56
Gets Weekends Off
Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
Originally Posted by Flying Boxes
So the short answer is:
HRA - Yes (I already had that which is why I asked specifically about Tricare for Life)
So, If an individual uses Tricare for Life (or any other health insurance), the VEBA (including money from scope payments) will never be available to that pilot for any medical expense.
Thanks for clearing that up Tony!
HRA - Yes (I already had that which is why I asked specifically about Tricare for Life)
So, If an individual uses Tricare for Life (or any other health insurance), the VEBA (including money from scope payments) will never be available to that pilot for any medical expense.
Thanks for clearing that up Tony!
The PRP is a reimbursement for premium payments in excess of the Medicare part B. Like for supplemental plans.
Originally Posted by Flying Boxes
The question is, does the Trust only offset FedEx ALPA post-medicare healthcare? Or is it to offset a retirees medical expense, regardless of where the health coverage comes from?
Last edited by Busboy; 07-02-2015 at 11:01 AM.
07-02-2015, 10:58 AM
#57
Gets Weekends Off
Joined APC: Sep 2006
Posts: 555
Originally Posted by Busboy
TFL doesn't charge a premium. For now. But, if they charge premiums or enrollment fees in the future...Yes, you would be eligible for the PRP reimbursement.
Thank you for answering the question clearly, concisely, and without agenda!
Discussion of issues is good. I learn more from group discussion then individually.
07-02-2015, 12:13 PM
#58
Gets Weekends Off
Joined APC: Feb 2011
Position: Bus driver
Posts: 322
Correct me if I'm wrong but I think this is how it flows. You retire before 65 you can pay for company sponsored health plan. Cost is roughly $700 ea for pilot and spouse, this is after the company contractual subsidy. Then at age 65 no more company plan, your now on Medicare. When you're on medicare this is where the post medicare veba comes in. It pays $120 ea pilot and spouse, not sure if it adjusts up. To collect the $120 you must have been on the company sponsored plan at 65.
07-02-2015, 12:14 PM
#59
Gets Weekends Off
Joined APC: Sep 2006
Position: MD11 FO
Posts: 1,109
Originally Posted by Flying Boxes
Busboy,
Thank you for answering the question clearly, concisely, and without agenda!
Discussion of issues is good. I learn more from group discussion then individually.
Thank you for answering the question clearly, concisely, and without agenda!
Discussion of issues is good. I learn more from group discussion then individually.
Have to ask Tony why the MEC chose to exclude military retirees from the benefit that we all pay for. Maybe DW and BC weren't TFL eligible??
07-02-2015, 01:47 PM
#60
Gets Weekends Off
Joined APC: Sep 2007
Posts: 355
Great recap. I highly recommend attending the ALPA retirement seminar. All this & more is explained in great detail, with Q&A from attendees. The union does a great job in presenting the information. It is not overly complex, but an incorrect assumption could be very costly mistake, as some decisions are one time only (no revocation), some have a firm decision window, and some require prerequisite decisions, which enable or prohibit follow on options, with no redress possible.
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